The Canada Revenue Agency (CRA) has officially announced that the Canada Emergency Wage Subsidy (CEWS) and the 10% Temporary Wage Subsidy for Employers will be considered government assistance. Thus, assistance received under either wage subsidy will reduce the amount of expenses eligible for Scientific Research and Experimental Development (SR&ED) investment tax credits and film and media tax credits.
It should also be noted that reporting deadlines for the SR&ED tax incentive program have not changed. Corporations still have 18 months after their tax year-end to file their SR&ED claim. For example, if your corporation had a December 31, 2018, tax year-end, you have until June 30, 2020, to file your SR&ED claim. However, businesses are strongly encouraged to file their SR&ED claim with their income tax return. Generally, the deadline for corporations to file their income tax return is six months after their tax year-end.
